All corporations are obligated to disclose consolidated financial statements in accordance with the 2013 mandate. The parent company’s management is required by Section 129 to compile the consolidated statement of finances.
As a consequence, businesses ought to be cognizant of the standards governing the format of these financial statements. Accurately representing the financial data of both the parent and subsidiary companies will be beneficial.
What are Consolidated Financial Statements?
The financial statements that comprise a consolidated financial statement are those of the entire group. The presented financial statements pertain to a corporate entity comprising numerous subsidiaries or divisions.
A Consolidated financial statement includes –
- Income statement
- Cash flow statement
- Balance sheet
